g/y dibs now free running.
money...
it's a gas baby, can't you take it! venezia
The DIBS Method... No Free Lunch continues
This is also why PC said that the best trades are the ones taken as early in the day as possible. This would correspond with the probability that there hasn't been a big move yet.
DIBS taken within the first few hours definitely have less S/L hits compared to ones taken after a run or 7 hours after the specified opening time (6 GMT).
Pred
- #5,186
- Aug 26, 2008 9:02am Aug 26, 2008 9:02am
- | Joined Sep 2007 | Status: Breakout Baby | 692 Posts
Not sure what you mean, I'm afraid.
Anyway I'll attach my chart.
PS Don't tell me I've got this one wrong! NAL and Jaroo will be in despair!
PPS Appreciate the range issues.
Lol, just kidding - that looks right to me
- #5,190
- Aug 26, 2008 9:52am Aug 26, 2008 9:52am
I agree with Jaroo - R/R ratio with H4 and higher is not as good as with H1.
I did some basic "express" backtesting (cable, 1Q2000) with H1 compared to H4. H1 produced better results with smaller drawdown.
Candle size on H4 is bigger than H1, yet the move potential is comparible. If you can catch a 100-pip move on H1 risking 10 pips (1:10), you are not as likely to catch (at least, not as often) 500 pips with H4 when risking 50 pips.
In my view, H4 IBs do work, but R/R does not often exceed 1:1 (actually, the same statistics - i.e. 1:1 being most likely outcome - was given for H1 IBs too, but in my experience H1 consistently gives 1:2 and higher).
Glad to see some discussion with higher timeframes... yes, it is true that most of the time an IB on the 1hr. involves a smaller drawdown yet with the 4hr. you do avoid more fakeouts and news spikes. Another benefit of the 4hr timeframe is that you are using the weekly open as you guide instead of the daily open (6gmt)..this also has the potential to give you a stronger probability that the trend will hold after the breakout. Here is one more....if you live in the U.S you can get up @ 4am est or 8am and trade the 8gmt and/or the 12gmt candle which fall within the time period recommended by PC, providing with a few more hours of sleep(something that we take for granted). Okay, one more.... for me, it slows down the process which has helped me a great deal with a bad overtrading habit.
The bottom line is that they are pros and cons using anytimeframe. PC never discouraged anyone from using a higher timeframe although he did mentioned that he stays away from anything less than 1hr. I think the most important thing is to find what works best for you based on your experience/capacity/personality and financial situation. This thread provides an "equal opportunity" to all ...but our realities may be very different.
Unus pro omnibus, omnes pro uno
- #5,191
- Aug 26, 2008 10:09am Aug 26, 2008 10:09am
- | Joined Aug 2007 | Status: I keep my eyes open | 1,108 Posts
Guys, have you noticed how little (if any) debate about DIBS Jaroo is involved in. His posts mainly cover trade set-ups and analysis (pre- and post-trade). And he delivers one successful DIBS trade after another.
He got the rules from the same place as we all did - PC's posts.
So, maybe it's time we went back to the drawing boards, instead of the podium...
He got the rules from the same place as we all did - PC's posts.
So, maybe it's time we went back to the drawing boards, instead of the podium...
One Chart is Worth Ten Thousand Words.
- #5,192
- Aug 26, 2008 10:11am Aug 26, 2008 10:11am
- | Joined Aug 2007 | Status: I keep my eyes open | 1,108 Posts
I think the most important thing is to find what works best for you based on your experience/capacity/personality and financial situation. This thread provides an "equal opportunity" to all ...but our realities may be very different.
Could you post some charts with good and bad H4 DIBS trades, please?
One Chart is Worth Ten Thousand Words.
- #5,193
- Aug 26, 2008 10:23am Aug 26, 2008 10:23am
Agree on all counts, Moneda!
Could you post some charts with good and bad H4 DIBS trades, please?
That is a good idea....if it does not get in the way of this great thread. If Jaroo gives the ok.. maybe we can post charts like he does and discuss them.... that could be helpful. Anybody else interested?
Unus pro omnibus, omnes pro uno
- #5,197
- Aug 26, 2008 12:24pm Aug 26, 2008 12:24pm
Forex007,
That is a good idea....if it does not get in the way of this great thread. If Jaroo gives the ok.. maybe we can post charts like he does and discuss them.... that could be helpful. Anybody else interested?
I'm up for it....stops me overtrading
- #5,198
- Aug 26, 2008 2:10pm Aug 26, 2008 2:10pm
- | Joined Aug 2007 | Status: I keep my eyes open | 1,108 Posts
Hi Moneda
I'm up for it....stops me overtrading
On a practical note, I think DIBS (hm, with H4 it should we called WIBS
) was designed to catch large chunk of ADR. I am not sure WIBS would allow do to that with WDR... Using H4 to catch ADR doesn't make sense to me: PC said (and it was proved to be so) that most of the IB trades happen during first half of London's session - that's one H4 bar.
One Chart is Worth Ten Thousand Words.
